Question 1

Match the terms below with the correct definitions.
 
-Sales minus the sum of sales returns and allowances and sales discounts

Accepted Answer

The answer of Match the terms below with the correct...

Question 2

Income from Operations is Gross Profit minus Operating Expenses.

Accepted Answer

A) True 
 B)False

Question 3

Simpson Corporation has the following information as of December 31, the end of its fiscal year:
  Instructions:
Using the information presented above, prepare the Cost of Goods Sold section of the income statement.

Accepted Answer

The answer of Simpson Corporation has the following information as...

Question 4

The calculation of the cost of goods available for sale is not affected by the amount of the ending merchandise inventory.

Accepted Answer

A) True 
 B)False

Question 5

Working capital is equal to total assets minus current liabilities.

Accepted Answer

A) True 
 B)False

Question 6

On an income statement, Interest Expense is shown as an Operating Expense.

Accepted Answer

A) True 
 B)False

Question 7

Notes receivable are written promises to pay an amount due to creditors.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following lists of items is used to compute the cost of goods available for sale?

Accepted Answer

A) Delivered cost of purchases and beginning inventory 
B) Sales, beginning inventory, and ending inventory 
C) Net sales, beginning inventory, and ending inventory 
D) Gross profit, beginning inventory, and ending inventory 
E) Beginning inventory and ending inventory

Question 9

The Interest Income account is classified as Other Income on the income statement.

Accepted Answer

A) True 
 B)False

Question 10

Net income appears on which of the following

Accepted Answer

A) Income Statement 
B) Statement of Owner's Equity 
C) Balance Sheet 
D) Both A & B

Question 11

Which of the following would be an appropriate account number for Selling Expenses

Accepted Answer

A) 11 
B) 21 
C) 41 
D) 61

Question 12

Operating Expenses consist of

Accepted Answer

A) Interest Expense and General Expenses. 
B) Selling Expenses and Cost of Goods Sold. 
C) Interest Expense and Selling Expenses. 
D) General Expenses and Selling Expenses. 
E) Interest Expense and Cost of Goods Sold.

Question 13

Match the terms below with the correct definitions.
 
-Once-a-year accounting entries recorded on the first day of the fiscal period

Accepted Answer

The answer of Match the terms below with the correct...

Question 14

On an income statement, net sales minus cost of goods sold equals

Accepted Answer

A) delivered cost of purchases. 
B) cost of goods available for sale. 
C) net income. 
D) gross profit. 
E) beginning inventory.

Question 15

In the closing process, the Sales Returns and Allowances account is credited.

Accepted Answer

A) True 
 B)False

Question 16

The account number 430 would indicate what type of account

Accepted Answer

A) Asset 
B) Liability 
C) Revenue 
D) Expense

Question 17

Land would appear on the balance sheet as

Accepted Answer

A) a current asset. 
B) a current liability. 
C) part of property and equipment. 
D) a long-term liability. 
E) either a current asset or a current liability.

Question 18

Which of the following accounts is credited when closed?

Accepted Answer

A) Unearned Ticket Revenue 
B) Wages Payable 
C) L.Larson, Capital 
D) Wages Expense 
E) Sales

Question 19

Debts that are due to be paid within one year or within the company's operating cycle are called

Accepted Answer

A) liquid liabilities. 
B) current liabilities. 
C) quick liabilities. 
D) deferred liabilities. 
E) long-term liabilities.

Question 20

The Sales Discounts account is shown with the Other Expenses on the income statement.

Accepted Answer

A) True 
 B)False

Exam 12: Financial Statements, Closing Entries, and Reversing Entries

Match the terms below with the correct definitions. -Sales minus the sum of sales returns and allowances and sales discounts

Income from Operations is Gross Profit minus Operating Expenses.

Simpson Corporation has the following information as of December 31, the end of its fiscal year: Instructions: Using the information presented above, prepare the Cost of Goods Sold section of the income statement.

The calculation of the cost of goods available for sale is not affected by the amount of the ending merchandise inventory.

Working capital is equal to total assets minus current liabilities.

On an income statement, Interest Expense is shown as an Operating Expense.

Notes receivable are written promises to pay an amount due to creditors.

Which of the following lists of items is used to compute the cost of goods available for sale?

The Interest Income account is classified as Other Income on the income statement.

Net income appears on which of the following

Which of the following would be an appropriate account number for Selling Expenses

Operating Expenses consist of

Match the terms below with the correct definitions. -Once-a-year accounting entries recorded on the first day of the fiscal period

On an income statement, net sales minus cost of goods sold equals

In the closing process, the Sales Returns and Allowances account is credited.

The account number 430 would indicate what type of account

Land would appear on the balance sheet as

Which of the following accounts is credited when closed?

Debts that are due to be paid within one year or within the company's operating cycle are called

The Sales Discounts account is shown with the Other Expenses on the income statement.